Low reaches $1201.57
Gold has been down 7 out of the last 9 trading days. In the process, the price has moved from a high of $1263.94, to a low today of 1201.57 - a decline of 4.9%. PS at the high the pair toyed with moving above the 200 day MA (currently at 1262.19) but though better of it. That helped to kick start the move lower.
The price decline sent the metal below the 100 day MA yesterday at 1211.02 (currently). Today the high stayed comfortably below that level (at 1209.09). Sellers are more in control below the 100 day MA.
On the downside though, there is support around the $1200 to 1202 area. IN addition to being a nice round natural support level, the low back at the end of May 2016 came in at $1199.80. The low on November 18 stalled at 1202.96. After falling below the $1200 level, the corrective high on November 28th reached $1198. So that area should give sellers a cause for pause.
Looking at the hourly chart, there is a lower (higher) trend line connecting most recent lows that cuts across at the 1200 level (see chart below). Will the buyers keep the price supported in the area? The first test is holding the level.
What next?
If the support holds (risk $1200), there should be resistance at the $1211 to $1212.50 area. The 100 day MA is up at $1211.02 and on the hourly chart below, the topside trend line is around that level (and moving lower). That would be the minimum levels to get and stay above if the buyers are to take back control.
